How this number is made
If your full retirement age is 67, claiming at 62 pays 70% and waiting until 70 pays 124%. Those factors are the standard reduction and the 8% delayed credit. People born before 1960 have an earlier full retirement age, so this page is not their table. It is also not a Social Security statement.
- The input is the monthly benefit at full retirement age, from your statement.
- Spousal benefits, earnings tests, and taxes on benefits are not applied.
Formula
Age 62 is a 30% reduction. Each year after 67 adds 8%, through age 70. Break-even is the month the cumulative payments from waiting catch the cumulative payments from claiming at 62, ignoring interest and tax.
Worked example
With the figures already in the form, monthly benefit at 70 is $2,480.00.
Questions
Why might these not match my statement?
Your full retirement age may not be 67. The earnings test can withhold benefits if you work before full retirement age. A spouse’s benefit follows different rules.
Does the break-even include investment returns?
No. A dollar claimed at 62 could have been invested. The break-even here is only cumulative checks received.